Metro: Are mortgage applicants seeing offers withdrawn?

Having a mortgage offer withdrawn still remains rare, although not unheard of. The key reasons a lender would withdraw an offer are due to changes to client circumstances or someone misrepresenting their situation. The main issue for many is once their offer has been issued they are free to do as they please. Scenarios such as changing jobs or taking out additional borrowing are all changes to a client's circumstances which, as part of the terms and conditions of the offer have to be declared to the lender. If not declared, it's mortgage fraud and lenders do find out one way or another which could result in an offer being withdrawn. Our tips will always be don't apply for additional credit, maintain existing credit commitment payments and avoid changing jobs during the mortgage process. If you're approaching the end of your fixed rate, don't leave it until the last minute to discuss your options. Keep in regular contact with the bank or your mortgage adviser about how things are progressing who can advise of the right steps to take to make sure you have a mortgage that's still valid for when the purchase is ready to complete.

Don't panic! Whilst mortgage lenders reserve the right to withdraw offers, they are certainly not in the habit of doing so willy-nilly or without very strong justification. After all, a formal mortgage offer is the culmination and conclusion to all the lender’s checks. We’ve seen no evidence to suggest there has been an uptick in offer withdrawals or any significant increase in applications being rejected. Despite this, if purchasers are worried or nearing the end of their offer period it would be wise to look to extend their offer. Many lenders will extend an offer for 3 months, some as much as 6 months assuming there is no change in circumstances, but I wouldn’t recommend leaving this to the very last minute as there is no guarantee of an extension, certainly not at the same rate. It would be wise speak to your lender or broker to consider having a backup option should you remain concerned.

It's just not happening without good reason in our experience. Obviously, you get the odd foolhardy person who takes a car on finance just before completion, which knackers the affordability assessment and the lender picks this up, but that's fair enough. If cases are packaged correctly and documentation matches the information presented to lenders, clients will be fine. Just be honest and if you are unsure talk to your broker.